Monday, California borrowed money from the federal government to make payments on unemployment benefits, the 1st state to go ‘On the Dole’.
Illinois and Connecticut may soon follow suit as both received approval for federal loans of up to $12.6-B and $1.1-B, respectively.
California borrowed $348-B after receiving approval to draw up to $10-B until the end of July.
The funds can be used to pay out regular claims separate from the $600 in federal benefits added to weekly checks for Americans under the coronavirus rescue package approved in March.
To repay the money, reports say, borrowing states will face tough budgeting decisions.
Aprils’ job report is likely to show the highest unemployment rate on record at 16.1%. Workers filed 26.5-M claims for unemployment benefits from 15 March through 18 April, according to US Labor Department data
California’s unemployment rate rose to 5.3% in March, the largest on record since Y 1976, but things could get much worse for the nation’s most populous state as the job losses were based on a survey taken the same week Governor Gavin Newsom banned gatherings of more than 250 people.
More than 30-M people have filed unemployment claims in the US, including about 3.7-M in California.
Have a healthy day, Keep the Faith!